GBPAUD continues to trade in the red today, with the RSI in the four-hour chart warning that further losses could follow up as the indicator has already pierced its 50 neutral threshold to the downside, while the MACD keeps losing momentum below its red signal line, providing an additional bearish signal.
A leg lower would violate the symmetrical triangle, potentially bringing more pressure to the market. In this case, traders could look for support between 1.7570 and 1.7520; a recently approached area. Beneath that, attention would shift straight down to the 1.7475 bottom, the lowest mark reached in three months. If the latter proves a weak obstacle, the 0.7400 psychological level could come under the spotlight.
Alternatively a reversal to the upside may stretch until the upper line of the triangle, around 1.7755. A break higher and above the 1.7816 peak could confirm that the uptrend off 1.7475 is still in progress. A steeper rally may also break strong support around 1.7850, opening the door for the 1.7933 barrier.
To sum up, as the triangle is nearing completion, a break below or above could be the start of a significant move, with the longer-term trend being bearish while in the short-term, price has been recovering.
